Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
Head of FX Strategy
Summary: The Bank of Japan surprised dovish again, both in action and language. While it was expected that policy rates will remain unchanged, there was some speculation around tweaks to bond buying. However, Governor Ueda dampened expectations around that, and there was no sense of urgency from FX moves with yen at record lows. Intervention risks remain, but market will likely fade any yen strength.
The Bank of Japan (BOJ) kept the policy settings unchanged at the April meeting, as expected. But the statement managed to surprise dovish yet again.
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